Forest Service Awards $3.6M Lawn Care Contract to Hoag's, Inc. for 5 Years

Contract Overview

Contract Amount: $3,600 ($3.6K)

Contractor: Hoags, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-05-01

End Date: 2030-10-31

Contract Duration: 1,644 days

Daily Burn Rate: $2/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAWN CARE BLACKDUCK RANGER DISTRICT

Place of Performance

Location: BLACKDUCK, BELTRAMI County, MINNESOTA, 56630

State: Minnesota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3,600 to HOAGS, INC. for work described as: LAWN CARE BLACKDUCK RANGER DISTRICT Key points: 1. Contract value of $3.6 million over 5 years. 2. Awarded to Hoag's, Inc. under competitive SAP. 3. Potential risk in long-term fixed-price contracts. 4. Sector: Landscaping Services, impacting Minnesota region.

Value Assessment

Rating: fair

The contract is a firm fixed price for landscaping services. Without specific per-unit cost data or comparison to similar contracts, assessing value is difficult. The duration suggests potential for price escalation if market conditions change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), indicating it was likely a limited competition. This method can be efficient for smaller procurements but may not always yield the best price discovery compared to full and open competition.

Taxpayer Impact: Taxpayers are impacted by the $3.6 million expenditure. The efficiency of the SAP competition and the fixed-price nature will determine the ultimate value for money.

Public Impact

Local landscaping businesses may have had limited opportunity to bid. The Forest Service secures essential grounds maintenance services. Long-term contract may offer stability for the awarded vendor. Residents in the Blackduck Ranger District will see maintained grounds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term fixed price risk
Limited competition under SAP

Positive Signals

Competitive award
Essential service provision

Sector Analysis

This contract falls within the Landscaping Services sector, which is crucial for maintaining public lands and facilities. Spending benchmarks for similar services can vary widely based on geographic location, scope of work, and contract duration.

Small Business Impact

The contract was competed under SAP, which is often used for procurements accessible to small businesses. However, the data does not specify if small businesses participated or were awarded portions of this contract.

Oversight & Accountability

Oversight will involve monitoring the performance of Hoag's, Inc. against the contract terms and ensuring timely delivery of services. The Forest Service contracting officer is responsible for ensuring accountability and proper use of funds.

Related Government Programs

Landscaping Services
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Long-term fixed price risk
Limited competition potential
Lack of detailed cost breakdown
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3,600 to HOAGS, INC.. LAWN CARE BLACKDUCK RANGER DISTRICT

Who is the contractor on this award?

The obligated recipient is HOAGS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $3,600.

What is the period of performance?

Start: 2026-05-01. End: 2030-10-31.

What is the estimated cost per acre or per service unit for the lawn care provided?

The provided data does not include a breakdown of cost per acre or per service unit. To assess the value more accurately, a detailed cost analysis comparing this contract to industry benchmarks for similar services in Minnesota would be necessary. This would help determine if the $3.6 million over 5 years represents a fair price for the scope of work.

What were the specific criteria for competing under SAP, and did this limit potential bidders?

Simplified Acquisition Procedures (SAP) are typically used for purchases below certain thresholds (e.g., $250,000, though this can vary). While intended to streamline procurement, using SAP can sometimes limit the pool of potential bidders compared to full and open competition, potentially impacting price competitiveness.

How will the Forest Service ensure the quality of lawn care services over the 5-year contract duration?

The Forest Service will likely rely on contract performance monitoring, regular inspections, and feedback mechanisms to ensure quality. The firm fixed-price nature means the contractor bears the risk of cost overruns, incentivizing efficient service delivery, but quality must be actively managed through oversight.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12444626Q0022

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4075 AERIAL WAY APT 152, EUGENE, OR, 97402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,113

Exercised Options: $3,600

Current Obligation: $3,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline